November 29th 1931.
Dictatorship for Germany
Now Possibility, Development
Inevitable in Spring.
By Gareth Jones
written for the N. Y. American. A Paper ‘For People Who Think’
Germany today we are witnessing the revolt of a great nation. It is, in
the eyes of Germany, a revolt against three betrayals - against the betrayal by
German politicians, against the betrayal by Versailles and against the betrayal
great class has been annihilated, the German middle class. Their savings
swept away by the inflation, educated Germans have been reduced to proletarian
is the situation which we must bear in mind in considering the Germany of today
and the Germany of tomorrow. That is the situation which led to the shock
of the world when on September 14, 1930, the startling news was flashed around
the globe that the National Socialist party of Hitler had gained a triumph of
day set the events moving which led to the present crisis, for the alarm caused
capital to flow from Germany and spread mistrust of Germany’s future to
London, New York and Paris. You all will remember the events that
followed: terror in France at the Austro-German customs scheme; failure of the
Credit Anstalt, threatened collapse of Germany’s finances, just saved by
Hoover’s moratorium; delay caused by the French; and that black day, July 13,
when there was a run upon German banks; calamitous withdrawal of short-term
credits from Germany; spreading of the disease to England and the crash of the
will remember the standstill agreement by which short-term credits were to be
maintained in Germany for a period of six months. Germany’s capacity to
pay has come to an end and rapid action must be taken to save her.
Root of Trouble.
is at the root of the present trouble? How far is Germany responsible?
roots of the trouble are foremost, the Reparations payments and, secondly,
over-borrowing by Germany, without which these Reparation payments could never
have been made.
is true that Germany borrowed too much - foreign investments exceeded four
billion dollars in seven years; but that was a mistake made throughout the
world. Bank credit expanded in the United States so rapidly that it was
made easy for everybody in the world to get into debt. It is false to
accuse Germany of financial bad faith, because the German Reichsbank and the
German Treasury uttered solemn warnings that too much money was going to German
states and municipalities.
is true that German towns were reckless in their social expenditures, but of the
loans made, the great majority went to industries and public utilities. To
pay reparations the government has imposed upon the German people an almost
intolerable burden of taxation and has had to cut down imports to such an extent
as to lower still more the standard of living. The suffering in Germany is
may bear the responsibility, the fact remains that Germany is faced with two
sets of creditors, on the one hand those who claim receipt of reparations
amounting to $473,000,000 each year, and on the other, those who hold four
billion dollars in private debts: And the curtain is soon to go up to show
this great fight, private debts versus reparations.
is only time to mention two things, firstly, that no government can exist in the
Germany of the future which is willing to pay reparations.
moral is, “First Against Reparations and for the priority of private,
debts!” Secondly, if tariffs throughout the world shut out German goods,
she will never be able to pay a part of the private debts. The moral is,
happens, however, there is a danger that all is too late. A Nazi
dictatorship in the Spring seems inevitable. Will this lead to civil war?
Will this lead in the long run to Bolshevism in Germany? Those are
problems we may soon have to face.